Heather Purchased Undeveloped Land to Drill for Oil and Gas

Heather purchased undeveloped land to drill for oil and gas. She spent $800,000 on intangible drilling costs during the year of purchase, which she elected to immediately deduct. During the three years of the well's operation, Heather deducted $1.2 million of cost depletion. Heather has sold the property for a $3 million gain. The gain will be treated as

A) $3 million Sec. 1231 gain.
B) $3 million ordinary gain.
C) $1.2 million ordinary income and $1.8 million Sec. 1231 gain.
D) $2 million ordinary income and $1 million Sec. 1231 gain.